Greatland Gold may buy Havieron back from Newmont

Greatland Gold (LSE: GGP) said Tuesday it is in a strong position to buy back a majority stake in the Havieron gold-copper project in Western Australia from Newmont (NYSE: NEM; TSX: NGT) if the gold giant decides to sell it. 

Newmont owns 70% of Havieron, one of the assets the world’s largest gold miner said it might offload after it bought Australia’s Newcrest Mining in November.

The asset is Greatland’s main project and the Australian junior says it has a right of refusal over the Newmont interest ahead of any sale to a third party. Greatland discovered Havieron in 2018 and the company has been working on it since. The property is located 45 km from the Telfer mine, another former Newcrest asset that Newmont plans to sell. 

“If an opportunity to consolidate ownership of Havieron were to arise, we would be highly focused on delivering an accretive outcome for our existing shareholders with a view to delivering a world-class Australian gold-copper asset,” managing director Sean Day said in the release.

Advanced project

Greatland is “strongly positioned” to acquire Havieron, which it has advanced in the past three months, the executive said. In water management, the flow rates are at the low end of the range previously anticipated and infrastructure requirements have been confirmed, which significantly de-risks development through the aquifer, Day said.

Total underground development at Havieron to date exceeds 3,060 metres, representing nearly 80% of the vertical distance through to the top of the ore body.

If a feasibility study confirms viability and Havieron’s owners decide to proceed with mining, the project will use the current Telfer infrastructure and processing plant. The move would decrease development risk and lower capital investment, Greatland said. 

Shares in Greatland Gold closed 4% higher at 5.8 pence in London, valuing the company at about £295 million.